Current Marketing Thoughts

Kevin Van Trump has over 20 years of experience in the grain and livestock industry.

Should you lock in your fuel needs?

Jul 15, 2014

Over the past couple of weeks, oil prices have gained some welcome relief from news that production will be ramping up in Libya. The government cut deals with rebel leaders in the east to end long-running blockades of some key export terminals. That relief may be short lived however, with guards at the state-run Sirte Oil Company shutting down production. This facility only produces about 43,000 barrels per day, but this type news could cause some headwinds in the oil markets this week as traders begin to worry that turmoil in the country is far from over. Fighting has also erupted at the country’s main airport between two rival militia groups and the US government is warning the violence could become more widespread. The rebel groups had been on the government payroll, but the two factions are now incensed over revelations of election fraud in the June 25 parliamentary vote. There are many such militia groups in Libya that all continue to struggle for power and which the government has obviously failed to reign in. The election fraud allegations seem to have sparked NEW ambitions to do away with a corrupt central-government once and for all and establish control of the country for themselves. Gaining control of the country’s number one resource - oil - would go a long way in cementing their power. You have to wonder if the newly reopened oil terminals are going to remain that way for long? If you need to lock in Diesel fuel for the fall this might be a good opportunity, start doing your homework and checking local prices??? Click Here to recieve my next recommendation.